SHENZHEN, China, March 12 /Xinhua-PRNewswire/ -- Morgan Stanley Principal Investments, one of the World's largest investment banks, Blue Ridge China Partners, L.P., a major investment fund in the United States and Citadel Investment Group, one of the World's most experienced alternative investment companies, announced that they have made a joint strategic investment of US$70 million in ITAT Group Limited ("ITAT") for the rapid expansion of its retail chain membership and mega stores networks in China.
ITAT is a Hong Kong incorporated company and is principally engaged in the retailing of a wide range of high quality apparel, shoes and accessories for men and women under various different brand names and through its operated retail chain in China named ITAT International Premier Brand Membership Store (referred to as "Membership Store") and ITAT Store Prestige Super Club (referred to as "Super Club"). With more than 100 self-owned brand names, ITAT adopts a "mass market" pricing strategy for the sale of quality and trendy merchandize with wide selection under a membership sale system. Since the opening of its first Membership Store in September 2004, in just about two and a half years time, ITAT is now operating 343 Membership Stores and 8 Super Clubs throughout China, representing a total retailing area of 260,000 square meters and 3.5 million members.
ITAT promotes the idea of "Harmonious business relationship and win-win strategy" by creating a unique and distinct business model which integrates the resources of merchandize suppliers and real estate owners in China with the goal of risks and profits sharing. ITAT differentiates itself from the
conventional retail business model through its uniqueness in multi-parties collaboration, reduction of intermediaries, minimizing fixed cost structure, control of sales proceeds and risks management.
2007 will mark an era of rapid expansion for ITAT as it plans to open up to 1,000 Membership Stores and 60 Super Clubs to achieve an aggregate retailing area of 1.8 million square meters and 30 million members.
The success of ITAT business model captures the attention of international capital investors. Following the first round fundraising of US$50 million from Blue Ridge China Partners L.P. in 2006, ITAT has now completed a second round fundraising of US$70 million from three major international investors. This strong backing further enhances ITAT business platform and distribution network.
"ITAT's achievement in building an extensive retailing network in China proves the business model successful. With the support of Morgan Stanley Dean Witter Asia Limited, Blue Ridge China Partners, L.P. and Citadel Investment Group, the expansion of Membership Stores and Super Clubs networks will be accelerated to capture the fast growing consumption market in China. I am confident that consumers will enjoy a very distinguished shopping experience in ITAT stores. We will continue our strategy of providing quality merchandize at affordable prices and wide selection to our members. We believe that these three prestigious investors will contribute their international capital market experience and advanced management knowledge to the future growth of ITAT and its successful listing in the near future," commented ITAT Chairman, Mr. Au Tung Kwok.
